A novel two-stage structure for coordination of energy efficiency and demand response in the smart grid environment

In recent years, Energy Efficiency Programs (EEPs) have been greatly expanded in multifarious aspects. Here, EEPs is considered as a virtual resource affecting operating expenditures of the power system. On the other hand, under the smart environment, Demand Response (DR) programs are also contemplated as virtual power plants in energy policy decisions ranging from short term to long term. Therefore, in this paper, a novel integrated model of demand in presence of EEPs as well as DR programs has been nominated. The presented model is handled in a Two-Stage Structure to Coordinate the EEPs and DR programs, namely TSSCDREEP. In the first stage, the level of Energy Efficiency Investment (EEI) is determined over the midterm horizon time. In the next stage, regarding the rate of EEI, a unit commitment problem incorporating EEPs as well as DR programs is handled while the interactions between EEPs and DR have been scrutinized. The proposed problem is implemented in GAMS. To evaluate the capability of EEPs and DR programs coordination, several analysis are carried out on the IEEE 10 unit to confirm the capability of the proposed framework from economic aspect.